4 ms·

i read an opinion that inflation might actually grow because some will put up their prices during the switch.

by kmlx 4y ago

kergonath 4y ago
I don’t have a reference offhand, but surely this analysis has been done when the euro coins and notes were introduced in 2002.
- kmlx 4y ago
  the opinion i read was from a croatian minister warning retailers about this phenomenon especially in a high inflation environment where products will increase in prices no matter what.
jq-r 4y ago
The inflation in the last couple of months has been very high. The price of groceries (and pretty much everything else) has been increased at least by 35% and climbing with no end in sight. A lot of basic stuff doubled in price. It is maddness, but the government is saying that economy is great which is a fat lie.
- astrange 4y ago
  Inflation is a sign of a good economy - it means people can afford price increases ie they are employed. (But it really annoys everyone because wages don’t grow as quickly as prices.) A recession (“bad economy”) tends to stop inflation because people stop spending.
  - qwytw 4y ago
    Not 35% inflation. That's never a good sign. > Inflation is a sign of a good economy Tell that to Argentina...
    - astrange 4y ago
      My Google search says Croatia CPI inflation is 13% YoY. Which is something but not 35%. And you can’t take Argentina or Japan as examples for anything. (Basically, Argentina just doesn’t work no matter what and Japan works no matter what.) They should probably give up on having a country and move back to Spain.
      - jq-r 4y ago
        I didn't say that the inflation is 35%, I just took the spot prices of groceries I usually buy and those are that much higher compared to months previous. There is no beating around the bush, the economic situation is far from good. Walking outside, seeing normal, retired people dumpster diving collecting empty bottles makes me depressed because I can easily see myself doing the same when my time comes.
        Melting_Harps 4y ago
        > There is no beating around the bush, the economic situation is far from good. Walking outside, seeing normal, retired people dumpster diving collecting empty bottles makes me depressed because I can easily see myself doing the same when my time comes. This is the part that most people who want to take a single sector that benefits them and project it on to the rest of the economy need to understand; as someone who has spend time in HR before it was in the EU, when it was on the HRK/non-schengen and then as it was announced (rather late in '22) that it would be entering a year ahead of schedule it's hard to wrap my head around this false reality they've been painting. I've both worked and lived there (as a US citizen) for a total of 3.5 years and just how normalized things like that are, and variations of these kind of things, is what I took away with the most as the date got closer. Lots of things look like the rest of the EU, and thanks to Chinese hot money flowing into E. European markets lots of it has a very thin veneer of looking as you said 'normal.' But if you stay outside the tourist season you will get a very clear look of how things really are and it's stark if you are not of the upper-middle class who own properties and has multi-generational privilege--as someone mentioned, the massive drain is just beginning with 10% of the population leaving in 10 years,some of my close friends being some of them. The cost of surviving in a tourist based economy has always been difficult, COVID really hurt many regions hard and never really recovered, which led to more consolidation to already wealthy and often foreign property owners etc... My last year was under the digital nomad visa program there, not bordering hopping as I had before, and I even had to get an OIB number etc... as I became a resident, and the truth is the government is still culpable of a lot of the post war 'Baltic mindset' thinking that still holds lots of things back--even for their own population. I don't see many things getting better in that regard to be honest, because even when it is in their own interest they are either too ossified to adapt (the public sector is filled with older age lifers) to a newer EU standard or seem to just ignore it until the problem goes away. I love Croatians and their culture but now really only enjoy myself in Dalmatia anymore after spending lots of time around the country, and while I wish them well in this as it can help the youth have better career prospects I cannot see how it will not lead to more of the same and it will likely end up like Slovenia (massive brain drain due to the high COL relative the wages) and ultimately end up like Portugal.
  - hulitu 4y ago
    Recession will come. Wages have not increased. People will not have enough money to buy the same stuff they bought before.
- landemva 4y ago
  For those who collect a percentage skim on all transctions, their economy is great. Higher prices bring more tax revenue for the skimmers.

i read an opinion that inflation might actually grow because some will put up their prices during the switch.

by kmlx 4y ago

i read an opinion that inflation might actually grow because some will put up their prices during the switch.

I don’t have a reference offhand, but surely this analysis has been done when the euro coins and notes were introduced in 2002.

kmlx 4y ago
the opinion i read was from a croatian minister warning retailers about this phenomenon especially in a high inflation environment where products will increase in prices no matter what.

jq-r 4y ago

The inflation in the last couple of months has been very high. The price of groceries (and pretty much everything else) has been increased at least by 35% and climbing with no end in sight. A lot of basic stuff doubled in price. It is maddness, but the government is saying that economy is great which is a fat lie.

astrange 4y ago
Inflation is a sign of a good economy - it means people can afford price increases ie they are employed. (But it really annoys everyone because wages don’t grow as quickly as prices.) A recession (“bad economy”) tends to stop inflation because people stop spending.
- qwytw 4y ago
  Not 35% inflation. That's never a good sign. > Inflation is a sign of a good economy Tell that to Argentina...
  - astrange 4y ago
    My Google search says Croatia CPI inflation is 13% YoY. Which is something but not 35%. And you can’t take Argentina or Japan as examples for anything. (Basically, Argentina just doesn’t work no matter what and Japan works no matter what.) They should probably give up on having a country and move back to Spain.
    - jq-r 4y ago
      I didn't say that the inflation is 35%, I just took the spot prices of groceries I usually buy and those are that much higher compared to months previous. There is no beating around the bush, the economic situation is far from good. Walking outside, seeing normal, retired people dumpster diving collecting empty bottles makes me depressed because I can easily see myself doing the same when my time comes.
      - Melting_Harps 4y ago
        > There is no beating around the bush, the economic situation is far from good. Walking outside, seeing normal, retired people dumpster diving collecting empty bottles makes me depressed because I can easily see myself doing the same when my time comes. This is the part that most people who want to take a single sector that benefits them and project it on to the rest of the economy need to understand; as someone who has spend time in HR before it was in the EU, when it was on the HRK/non-schengen and then as it was announced (rather late in '22) that it would be entering a year ahead of schedule it's hard to wrap my head around this false reality they've been painting. I've both worked and lived there (as a US citizen) for a total of 3.5 years and just how normalized things like that are, and variations of these kind of things, is what I took away with the most as the date got closer. Lots of things look like the rest of the EU, and thanks to Chinese hot money flowing into E. European markets lots of it has a very thin veneer of looking as you said 'normal.' But if you stay outside the tourist season you will get a very clear look of how things really are and it's stark if you are not of the upper-middle class who own properties and has multi-generational privilege--as someone mentioned, the massive drain is just beginning with 10% of the population leaving in 10 years,some of my close friends being some of them. The cost of surviving in a tourist based economy has always been difficult, COVID really hurt many regions hard and never really recovered, which led to more consolidation to already wealthy and often foreign property owners etc... My last year was under the digital nomad visa program there, not bordering hopping as I had before, and I even had to get an OIB number etc... as I became a resident, and the truth is the government is still culpable of a lot of the post war 'Baltic mindset' thinking that still holds lots of things back--even for their own population. I don't see many things getting better in that regard to be honest, because even when it is in their own interest they are either too ossified to adapt (the public sector is filled with older age lifers) to a newer EU standard or seem to just ignore it until the problem goes away. I love Croatians and their culture but now really only enjoy myself in Dalmatia anymore after spending lots of time around the country, and while I wish them well in this as it can help the youth have better career prospects I cannot see how it will not lead to more of the same and it will likely end up like Slovenia (massive brain drain due to the high COL relative the wages) and ultimately end up like Portugal.
- hulitu 4y ago
  Recession will come. Wages have not increased. People will not have enough money to buy the same stuff they bought before.
landemva 4y ago
For those who collect a percentage skim on all transctions, their economy is great. Higher prices bring more tax revenue for the skimmers.